Arizona Metals intersects good grades at Kay
Two-time Vale president Eliezer Batista dies
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Look beyond market approach to project valuations: van Zyl
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Cardinal heading down familiar gold road
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Sarama right in the middle of big exploration, corporate build-up
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The Toronto-headquartered company said its first seven drill holes tested the shallowest part of the North Zone, which started at a vertical depth of 100m.
The first six holes intersected massive sulphides, with the seventh believed to have passed between the North and South Zones. The drilling extended the vertical limit of the known mineralisation a further 50m to 120-170m, which is still short of historical drilling by Exxon Minerals which reported mineralisation to depths of 300m.
Two-time Vale president Eliezer Batista dies
Leadership
Look beyond market approach to project valuations: van Zyl
Leadership
Cardinal heading down familiar gold road
SPONSOREDcardinal resources
Sarama right in the middle of big exploration, corporate build-up
SPONSOREDsarama resources
Among the highlight intercepts of the new programme were 4.6m at 6.9% copper-equivalent, 13.5m at 2.9% Cu-eq, 2.4m at 9.2% Cu-eq, and 2.7m at 5.4% Cu-eq. Several intercepts also returned high-grade gold between 1-6.34g/t gold and trace to 340g/t silver.
The massive sulphides consist of primary copper mineralisation in chalcopyrite, with smaller amounts of zinc in sphalerite.
The company last month drilled a further hole into the South Zone, which intersected about 6m of semi-massive to massive sulphide mineralisation. Assay results are pending.
CEO Marc Pais said the team was encouraged to see the initial holes of the phase-one programme had encountered grades, widths and mineralisation "very similar" to those reported by previous operators.
"We are especially pleased to see the proportion of gold and silver content in the assays reported. To date we have tested only the shallowest part of the North Zone and one portion of the South Zone. We look forward to continued testing of the extents of mineralisation on strike and at depth, as soon as it is safe to resume drilling," he said.
Exxon Minerals determined proven and probable reserves of 6.4 million tons grading 2.2% copper, 2.8g/t gold, 3.03% zinc and 55g/t silver in 1982.
The Kay mine is a steeply dipping VMS deposit that has been traced from a depth of 150m to at least 900m. It is open for expansion on strike and at depth, according to Arizona Metals.
Shares in the company (AMC:TSXV) fell more than 15% on Wednesday to C38c, which capitalises it at $21 million (US$15 million).